INAFI Nepal was initiated as the country chapter of INAFI International in July 2003 to create conceptual clarity, enhance the managerial capacity and to expand quality outreach and sustainability of MFIs in Nepal. INAFI Nepal registered itself as a Nepali NGO in 2006 under the Society Registration Act, 2034, and hence, also works as an autonomous NGO of Nepal.

INAFI Nepal follows a multi-stakeholder approach by involving different types of Microfinance Institutions as its members. INAFI Nepal has as its members Savings and Credit Cooperatives, Financial Intermediary NGOs, NGOs with saving components, and microfinance development banks.